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1. 3Approval of Minutes▶ 0:01
2. 4Consent Agenda▶ 0:01
3. 5.b

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   Commercial Real Estate Redevelopment Grant Agreement w/Nouveau Construction LLC RE: Coastal Cottage Builder

   approved

   The CRA Board approved a Commercial Real Estate Redevelopment Grant Agreement with Nouveau Construction LLC of Land O'Lakes to build the first two Coastal Cottage homes (the 'Driftwood Delight' and 'Ocean Hug Haven' designs) on two combined city-owned lots in the Edgewater Gardens subdivision. Incentives include donation of the two lots (valued ~$22,000 each) plus a $25,000 per-unit incentive paid at CO, with construction to commence within 6 months and complete within 18 months. Staff also presented a broader vision to expand the coastal cottage concept into a pipeline redevelopment of the 77-lot Edgewater Gardens neighborhood in partnership with Pasco County.

   • motion:Motion to approve the Commercial Real Estate Redevelopment Grant Agreement with Nouveau Construction LLC for the Coastal Cottage builder project, authorizing the Executive Director to execute the agreement. (passed)
   • direction:Direction to staff to explore rezoning the Edgewater Gardens area to restrict future development to elevated/coastal cottage-style construction, and to pursue county partnership on roadway and drainage improvements. (none)
   • direction:Direction from the Chair for staff to organize an outreach/update meeting in the affected neighborhood for Jackie Phillips and other residents regarding city mitigation efforts, with materials to be shared with the Chair in advance. (none)

   📍Cottages of Oyster Bayou📍Edgewater Gardens subdivision📍Railroad Square / Cavalier Square🏢Nouveau Construction LLC🏢Pasco Regional Planning Council🏢Sasha's at the Hacienda👤Altman👤Barrett Dow👤Commissioner Mariano👤Dale👤Debbie👤Eric👤Gammon👤Jackie Phillips👤Jonas👤Manns👤Patel#Driftwood Delight (1600 sq ft, 3/2, ~$270,000 build cost)#Edgewater Gardens 77-lot pipeline redevelopment vision#FY 2026-2027 CRA Redevelopment Incentive funding#Florida League of Cities Conference#Hurricane Helene recovery#Ocean Hug Haven (1464 sq ft, 3/2, ~$275,000 build cost)#R-4 Coastal Cottage zoning district

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   Of you all for nothing. Okay. Commercial real estate redevelopment grant application or agreement. Rather. I don't believe that the representative from nuvo construction made it in this evening and date. Mr. Gammon will correct me if I'm wrong and. But he'll present the agenda item absent his attendance, so that you can at least give some consideration to the agenda item, and Mr. Gammon wanted to take it away. Thank you, miss manns. Mr. Chairman, fellow directors excited to present this redevelopment grant agreement to construct the first coastal cottage units in the edgewater gardens subdivisions. Let me do just a real quick recap. Obviously you all know this. The majority. Most of the land west of the river is in a high flood risk zone. That prompted the community development department to create the r-4 coastal cottage zoning district, which I might say is pretty cool. And I'm not saying that because it's dale's turn to buy tonight. So let's narrow it down to edgewater gardens again, northwest quadrant of the city. There's approximately 77 lots in this enclave. The city owns three of them. What we have done is we've combined those into two lots in the program. The reason we did it, the minimum width is 38ft. And those two that are lot two are 30ft each. So we combined them to 1 to 2 buildable lots. Both of those lots are vacant and ready to be built on. Earlier this year, staff posted an rfp seeking a qualified, highly creative home builder to build two coastal cottage homes. Again, we chose no no construction out of land o lakes. They. Their business started in 2015. The staff believes novo has a vision, backing and experience to get this done, I believe. I think director altman's comments are valid. We have checked their website. They do do do residential projects. They have designed these ones which is a residential build. Obviously they're the ones committed to doing this, so we're pretty comfortable that they'll get this done. This is a pretty expensive $500,000 plus investment in our community. They'll do it. So that's one of the reasons we went with them. These are the two homes they've designed the driftwood delight 1600ft■!s 332. It's going to cot them about $270,000 to build this one. They've also designed ocean hug haven that's a little bit smaller, 1464ft■!s, again a three two. And that might cost about 275 000, according to nauvoo. This is the terms of the redevelopment grant agreement. It will be effective if it's approved tonight. Nauvoo is required to commence their construction within six months and hopefully and complete the units within 18 months. Hopefully, both of those timeframes will be beaten as an incentive. We've offered a couple of things. Number one, which you talked about earlier at the city council meeting. You donate the two lots into the things. Those lots are valued at about 22000 each. And then we also give them a $25,000 incentive at co per unit just to get these built to get this program rolling. Funding will be programed into the 2020 627 redevelopment as a redevelopment incentive in the CRA before. Usually I'm ready for you guys to close this and get us home, but I want to talk a little bit after this. So I'm here for any questions, executive directors here for [00:30:03] Any questions. What we want to do right now is authorize the executive director to execute the redevelopment grant agreement. But then don't close me out yet, Mr. Director. Mr. Chairman, don't close you out. Yeah. Don't, don't. I've got other things to say for a change. I'd rather do this one first, if you could. And then I want to talk about another vision. We're voting on this one now. Please. Do we have any public comment? Seeing no one come forward, bring up for discussion and vote. I'll move to approve. Second, the motion maker. No, I think this is crucial. You know, we have all this property over there. And I think until we show something physical, I don't think we're going to get a whole lot of traction. I think the incentive package is reasonable and fair. You know, I'm excited for the build. And then is there anything going forward after these two with this builder? A second my question would be as to the $25,000. Is there a time frame in which they have to perform before they get that? And what would that be? Yes, sir. They have to have it complete within 18 months. And they we don't pay that until a co is issued on both units. Thank you. Just to reiterate that the coastal cottages rezoning and being able to see some of the work that's coming out of that definitely is a. I know we we've voted on it, we've contributed to it, but it's definitely an innovation of our planning department and our economic development, economic development department and our city manager and the various staff that work to make it happen, and being able to see some of that work coming to fruition, especially in an area that was impacted heavily by the hurricane and being able to point to this and say, look, this city is moving less than 24 months after the hurricane on solutions to bring people home from flood mitigation mitigated disaster. So I'm looking forward to see the work. Councilman. I didn't before, but councilman altman does raise a good point on just just some questions about the residential strength of the the. Well, I don't want to misquote you, but just when I pulled up the website, I didn't see I see bathroom remodeling, I see additions. I'm just. If the city staff. If city manager just doesn't mind providing an end of week report, just like a portfolio of actual residential based work, that would be helpful. Yeah, I can follow up on that, only to say that the situation I discussed was in order to get the financing to build something. So if the man has until the 18 months to do it and gets a permit and it's paid for, or they get their own financing, that's their obligation. I would say that if we approve this today, that 18 month comes before December 31st of 2027, which means it would get on the tax roll for the next year. So I'm glad we're doing it now and not next month, because then someone would be very tricky to try to make that happen just in january. So getting it done in the 27 fiscal year is probably worth the $25,000, you know, incentive if you put the two. Are you finished? Yeah. Since we put the two lots together, can they build an adu? Just kidding. All those in favor signify by I I I that's for nothing. Communication. Patel two things. It started with one. But can I, can I finish up? The first one was I think I think councilman altman can I finish up my presentation real quick? I'm sorry. Yeah. I thought there was something else. Yeah. Sorry. Now there'll be three things. Three things if you're depending on. That's right. I'm sorry. I don't usually blab, but I'm gonna blab a little bit tonight because it's early and everybody's ready. You ready for me, eric? Happy anniversary. Honey. I'll be home as soon as he's done talking. I apologize. I know we have communication. He won't be on very early. What's that? Same slide. His wife's birthday. So I'd have to thank director jonas for teeing this up. I don't think he knew where I was going, but it's really. What's the next step? I mean, two, two units is great. It's a nice start, but we've got bigger plans in place. And as soon as eric gets me teed up, I can kind of show you what we're thinking about doing. Again, thanks for your support on getting that done. This is where we ended. Here we go. This is what we asked the question what if, what if we could turn this floodplain prone neighborhood into an elevated coastal cottage community? Not just two units, but an actual community without displacing the residents, the [00:35:02] Residents that live there. Here's the core issues. These owners are kind of in a box they can't really sell because nobody really wants to buy in an area that floods all the time. As you were saying, director patel, the owners can't technically rebuild because they've exceeded the 50% rebuild. They are doing it, but they're not technically supposed to be able to do it. And if they do rebuild, they got to build it to code, current code, which they can't do, and they've got to build it one foot over base flood elevation, which is too costly for them to do it. So that's a tough one in their neighborhood. And it's kind of created this no exit for the owners. And what we're trying to do is say, hey, can we do something that will help these trapped owners get out of there? Here's kind of our solution or what we have in mind. We want to create a continuous pipeline that lets residents stay in their neighborhood while their homes are actually replaced with elevated, resilient units. A few of the units would be built. So you've already approved that. You would start with the two units. We could go out to the existing owners and say, hey, listen, if you will buy one of these when they're finished, we will let you exchange your unit for you. We might give you more value than it's normally worth because you're staying in the community. You buy in, you upgrade. We then take their house. When the first one's done, they move, we take theirs, knock it down, build another one, keep the pipeline going. So that's how it kind of work. We would negotiate with them. It's a pretty good pool of people that are in there that could do things. We've been working with the county on doing this. They're very excited about it. They would participate with the agency in helping with down payment payment assistance, acquiring lots. Again, it's it's a line of credit, if you will, because it'll keep going forward and moving forward. I just want to kind of tell you how we could kind of get it started. These are the 77 lots. Again, let me kind of do nervosa is the lime green units. Those two is where it will start. The blue ones on there, I guess are kind of bluish. There's nine lots for sale right now on zillow, lots in a couple of homes, the yellow, orange and purple. Those have some kind of city action against it. As you were talking about earlier, director patel, those those three have some things happening on them. And the black pattern ones, those are the ones that don't currently meet the zoning requirements. Again, you have to be 2800ft■!s total area and a minimum lot with the 38ft. But I've talked to the development director. He said we could work variances on those if need be. So the question comes, how would we get started on this? Yeah, I've quoted him and I wrote it down. If you pop these red things on, those are all the vacant lots. So if you want to get started, that's where I would start. They'd be cheaper to get in and you could probably buy them. Some of are already for sale ones for sale for $15,000, ones for 25. They've been on the market for a long time. That would probably be the best way to start a pipeline because you have vacant units ready, vacant lots ready to go. That's kind of how we wanted to just tell you what our vision is. Some people look at that area and say, boy, stay away. It floods all the time. There's no reason to be down there. It really is probably a nice pool that we could get started and do something really amazing. The coastal cottage is a great product. If it works would stay with us. We would pre-sell the units so that you're never out too many. You're never out 30 units or anything. You might be out 3 or 4 units at a time and then keep rolling it forward. So thanks for the time. I usually don't blab on in these things, but I appreciate the time to listen to what we're thinking about. Is there, is there any kind of, is there any kind of restrictions or anything that we need to do up here, or you need to do to restrict that property to coastal cottages only? Yeah, there is, and it would require a rezoning. So, I mean, I'm asking, should we do that ahead of something that we could work on. Well, I'm saying we need I was thinking about doing that ahead of time before somebody comes in and tries to buy them all and starts a whole nother thought we would work on that. Okay, so I think I would add to that. I don't think you can't just yeah, I don't think you could build what's currently there. You can't go in and build a brand new product unless it's elevated. And dale could probably go on that necessarily be a coastal cottage. It might be elevated, but gauging your interest. And then we would come back to you with a plan. Yeah. Because I mean, I just say if you got the coastal cottage added to here at city hall, but it doesn't mean people that want to buy the piece of property. They're going to put coastal cottages there. A couple quick questions, dave. So I like the idea. I think it's a great idea. And if we are getting some assistance from the county, what I think we maybe need to look a little deeper and do something with the roadway going in there, [00:40:02] Because the bigger issue is not just their physical lots flooding, it's flooding going in there and the road conditions are horrendous. So to me, if I'm going to get somebody to buy a brand new house, 300,000 and drive down that road, that might be a little bit of a hard sell. So I think maybe we need to approach the county and maybe work some deal out to try to work the roadway system in there as well. If we're going to make this investment into buying these and selling them, I think we could get something from the county to help us do something with the roadway and somewhat of drainage. I mean, obviously it's low lying. There's not a whole lot we can do, but that's just one of the points I'm just thinking of off the top of my head. Yeah. So you're you're in my ballpark now with resilience and economic stability in the future. And I would like to let my colleagues know that I've been asking the city manager and the assistant city manager and haven't had a chance to get with dave yet, but. I'm hopeful that we can have sort of a resilience, master planning, sort of brainstorming session. Later in august after the Florida league of cities conference. Just a couple of 2 or 3 hours. But we've had offers from engineers and some of our partners. So I go back to the question about asking the county for help the county. The planning director for the county has expressed that he loves to do redevelopment and that he wants to work with us. So I'm very encouraged that you're already working with them. The city has been working hard on our relationship from the county administrator down. The staff has always enjoyed a good relationship, I think with our county partners, from some of them who came from us, like Barrett Dow, who's involved in a lot of this stormwater and that kind of infrastructure. So the goal is for us to get in the room, the county staff and the county on board with this plan. So they're already in fact, it was Commissioner Mariano, apparently, who was griping a little bit that he wanted us to reduce the CRA. What we really need is the county to get excited about what the CRA can do. So not only asking them how they can help us, but letting them know that what we are getting back in our county share of our taxes our residents are paying, is part of a plan that they endorse. And so once we get our financial statements caught up and we know exactly what we have to deal with, we'll see what we can accomplish and how we can accomplish it. And I think being open with them that will get that support. And maybe we can hold off this sense that we're taking money from them to we're investing the money that we're using in redevelopment the way we're supposed to. So thank you for that, and I'm glad to hear. I'm glad to hear these partnerships are growing. Thanks for communication. Yeah, I will once again, happy anniversary honey. Have I'll just make one quick stop on the way home. I think maybe he's only holding himself up. Maybe a lot of flowers. It better be a lot of flowers. But I did want to get that information out to say I'm hopeful that if we hold something that's kind of a loose discussion about some of these ideas, that the different parts of the town and how they fit together. We've had that discussion already tonight with with the project we just approved, and the one before that. There's so many joint projects that we can kind of just have this overall discussion how if you want an accessory dwelling unit to look like the house that is on it at a bigger scale, we want our city to have our sense of walkability and connectivity makes sense as a whole. And so the sort of master planning we've already had that done once from the regional planning council and debbie, the regional planning council is giving some advice to port richey right now. I think they're hiring them for some work. And so I think it would be great to get port richey to come and the county to come and the school board, and they've all expressed interest in understanding what we have going. So I think it's really an opportunity for us to really make the pitch that the resiliency and the recovery dollars that are out there, along with our own support and partnership, could really make things happen a lot more than we can do it on our own. So that's the goal. If debbie gets it organized, it would be public, and we could and we should all have our chance to [00:45:04] Jump in. Kind of like you've been talking us having, but trying to get it before the budget process is over and align ourselves up for some funding. That's it. I'll be home as soon as well. Patel did. He hasn't gone yet. Got two items. Oh, okay, I will. I have three now. I did have three, but out of guilt for whoever you're talking to up in space, I'm going to hold off on those two for another time and just focus on this. The just for the record, it's my wife, just in case any. I'm assuming she's listening over the live stream. I didn't mean anything by that. To be clear, you're staying in the eu tonight. I offer green key. The. I can't think of it the to the name of it to think the development that we did a rezoning on. I'll just give you straight names because I can't think of the name of it. The voyage lane, hermes way, opus way, odin way, wonderland, that project. Those are all new paved roads. That's a brand new, fresh development. And when I drove by that recently, I didn't see a lot built since we rezoned it. And so that's where my mind went with this. I'm very excited by it. I think this is different than that. I, I, I, I think there's a, I mean, when we talk about resiliency and councilman altman's point like this, this hits, oh, you can even see it on here. Yeah. Cottages of oyster bay or bayou. Bayou. Oyster bayou. How those two right below the yellow. Yeah. Right there south of it. How how this compares to that in respect to the market in in whether I think this is slightly different in that you potentially have those individuals that may, with down payment assistance incentive would be able to buy the homes. But my fear is driving by that there's not a lot of movement happening yet. And so what what implications? I would hate to sink money into something. And then it turns out we have for sale signs on properties we can't get people into. But the what what eases that concern is the idea of this being a partnership with the county, this being a partnership with down payment assistance in some ways to try to keep people, to stay here. It's it's an excellent breakdown. And I the word that comes to mind is excited. I'm very excited by it. And just to say also, it's an area that I feel like I forgot that you're waiting on your wife. I feel like the. I had in my in my excitement, I feel like I hear about edgewater's all the time and some of the needs over there. And so this couldn't be a better pocket community for us to serve and hopefully maybe motivate long term here. Some of the people south. You. You see there's a big there's a there's a need for annexation here too. And so this, this, this also gives us something to sell on that in that respect. Wait for him to. I have one thing to add. It's my turn. I just want to thank the sports coast for hosting a scallop dinner that myself and the mayor attended Sunday at Sasha's at the Hacienda, and it was phenomenal. Food was great ambiance, so I just wanted to give them a shout out. So that's the end of what I got to say. All right. I also want to say that I said back when we opened up railroad square that we had no idea what was going to happen there and what what opportunities we were. We're going to happen there. And cavalier square, we had our first wedding on Saturday, and they had chairs there and everything. And it was, I guess, a really big, well attended wedding. So it wasn't my wedding. So anyhow, that's it. Either one of you two. I do have something I want to address jackie phillip's comments and we all feel very sensitive to the just horrific experience that she had and many of us had in regard to hurricane helene and what she has proposed, we have said many times, is not necessarily a rightful solution to the the experience that she did have. And we've given her a white paper, and we've given all of you a white paper in that regard. And we've also communicated to all of you in writing more than once that the CRA isn't an appropriate funding source to rely on for any type of a solution that might be considered for the problem that exists there. But what we haven't done, and I feel badly that she continues to appear and continues to ask [00:50:07] For the same thing. We haven't really given her an update of any sort of what we are doing in the area that might be considered part of mitigating any, any future experience or minimizing a future experience. And I feel like we owe her that. And so what I'd like to propose is that we put something together and spend some time introducing those things to her and anyone from the neighborhood that might share that interest. And with your permission, I'd like to go forward with something like that. I'd like you to do it at their in their neighborhood somewhere. That's what I'm thinking. Yeah. Okay. Share the common location. Whatever meets their needs. Most. Oh. Of course. The materials in advance. Whatever you plan on giving out. Are you giving something out? Like a materials. I don't really know at this point. Okay. It may be that we do give out some materials. Well, if you do, I'd just like to see those in advance. You'll get it. Okay. I got five minutes yet. I said I said we * This transcript was compiled from uncorrected Closed Captioning.

   Original caption was ALL CAPS; this page lowercases and capitalizes sentence starts. Names from the meeting’s entity index are restored. For exact wording, consult the video or the city clerk.